Identifying Zigzag Pattern

The big picture of Elliot wave is a five wave structure followed by 3 wave structure. In this educational article we have tried to show our readers how simple zigzag pattern looks and what internal structures does it have? A zigzag pattern in Bull market has a 3 wave structure (a-b-c) in downside, as soon as the third wave is complete it will start its next leg on upside. The internal waves of each three wave are (5-3-5) which will complete one zigzag pattern. A zigzag pattern in a Bear market has a 3 wave structure (a-b-c) but here it is on the upside. Once the third leg on the upside is over it will start moving lower. The internal waves of each three leg are (5-3-5) which completes one Bear market zigzag pattern. It is occasionally observed that Zigzags occur twice or thrice at succession. This happens when one zigzag pattern falls short of its target. In this case each zigzag is separated by one more wave, after completing that wave again zigzag pattern will start w

IDBI: Channel Break out and Elliott Wave Counts

IDBI Bank comes under the head of NSE Midcap 50. On Tuesday, NSE Midcap 50 was down by 1.46% which was the highest fall as compared to past 6 days of trading. On October 09, 2013 IDBI Bank offered Home loan and Auto loan on Base rate which is currently at 10.25%. It has also decided to waive the processing fee for both House loan and Auto loan during this period. All these factors indicate positivity for this stock, if this was the case why IDBI Bank could not perform? Using combination of simple technicals like channels, retracements etc and advance technicals like Elliott Wave counts we were very accurate in mentioning the level of IDBI Bank as it could move till 64-64.50. On Monday, 14 th October 2013 IDBI made a high of 64.50 and reversed. We have now further analyzed the movement of this stock using the combination of technical study IDBI 60 mins chart Analysis From the above 60 mins chart, we can say that IDBI bank has bounced from 58 odd levels and

Bank Nifty : Elliott Wave counts

Bank Nifty : Anticipated Happened Bank Nifty showed some good strength especially when it crossed   9220 levels in the early October 2013.   Many of the analysts were negative on this index, but as soon as the important pivot high was crossed things changed. We had covered Bank Nifty in our daily research report “ The Equity Waves” publised on 11 th October 2013.   In which we had told to our subscribers the cluster of resistance where Bnak Nifty can reach in coming trading sessions. The below excerpt is been picked from our research report as on 11 th October 2013. Bank Nifty 120 mins chart Anticipated and Happened on 11 th October 2013 Analysis From 120 mins chart, the index after breaking the downward sloping red channel gave a bullish break and started moving up by protecting its previous lows which is a positive sign for this index. Currently, the index is moving precisely in an upward sloping black channel. 2 days prior it bounc

INFOSYS: Predicting Through Gaps Anticipated Happened

Infosys Results were declared where its ' second quarter net profit grew 1.4 percent quarter-on-quarter (1.6 percent year-on-year) to Rs 2,407 crore for the quarter ended September 2013, impacted by one-time visa settlement charge of Rs 219 crore. Consolidated quarterly revenue jumped 15 percent sequentially (31.5 percent year-on-year) to Rs 12,965 crore, with the company attributing it to robust volume growth, stable pricing and strong client addition during the growth. The company, like most exporters, also benefitted from the weakness in the rupee during the quarter. The company said average rupee-dollar rate during the quarter was 62.77. After announcing the results the stock price of Infosys way up by 7.5% in the early hours of trade. All this was just because of good results or there was already a cause followed by its effect? On 3 rd of August 2013 we had published an article on Infosys: Predicting through Gaps in which we had mentioned, “ Prices have taken out

Nifty: Anticipated Happened

In our previous article we had mentioned," E xpect Nifty to move till 6050-6100 over short term as far as 5720 is protected on downside."- Bulls Eye!! We were very accurate in capturing the entire move of Nifty from 5850 till 6142 which happened on 19th September 2013. Thus achieving our mentioned level of 6050-6100 levels. We were continuously saying that Nifty has to move till 6050-6100 in many of our articles and reports. Nifty when made the high on 19th September 2013, was consolidating in a range of 5900-5800 before this day. However the entire world was bearish due to QE Tapering which was going to come of 18th September 2013. Unfortunately Mr. Bernanke postponed the date of tapering and as a result we saw 215 points gain on Nifty the very next day. It is always advisable to think objectively and stop following the crowd. Elliott wave analysis and other advance concepts always helps to understand the current trend or the forthcoming trend. By using this concept

Nifty: Elliott Wave Counts

While majority of the broking houses and analysts believed that Nifty will move below 4800 and Indian Equity markets will start its multiyear bear trend, if this was possible what suddenly happened to Nifty? Well combining advance technicals like Elliott wave analysis and simple technicals like channels, projections and retracements we come to know the possible targets, resistance and supports for particular index, stock, commodity and currency. Nifty after making a low of 5118 never even moved below it and on same day that is on 28 th August 2013 gave a reversal sign and closed near the high of the day. If we closely observe on that day it bounced from the lower end of the red channel and moved higher. We were also very sure that Nifty will find support near 5100-5050 levels which is 161.8% projection of wave A that we have marked on the chart. Using simple technicals not only helps a trader to know the possible up move or down move of particular asset class but will help

NSE Midcap 50: Zigzag Pattern near completion

NSE Midcap 50 is an index and consists of 100 stocks which include Adani Ent, ABB, Bharat Forge, Bhushan Steel, Biocon, CESC, Dish TV, Divis Lab etc. NSE Mid Cap 50 Daily Chart Analysis: NSE Midcap 50 is moving lower in the form of corrective pattern. There are many corrective patterns, but the index is moving in a Zigzag pattern. Zigzag pattern has three legs (a-b-c) and is one of the simplest patterns to identify. Here NSE Midcap has probably completed the last leg and currently it is moving in a positive direction. The index can move till 6800 levels over short term. A decisive move above 6800 will not only open further positive possibilities but will also give bullish break in falling red channel pattern. Momentum Indicator RSI has shown positive divergence (shown by blue line). From wave perspective, NSE Midcap made a high on 9 th January 2013 and thereafter it is moved lower in the fo